Fashion retailer New Look is set to accelerate store closures as it continues to grapple with the fallout from Labour's tax-raising budget.
The retailer which has two stores in Aberdeen, one in Union square and Bon Accord has said about a quarter of its 364 UK stores are at risk of closure when leases expire. Around 8,000 job losses could be expected across its workforce.
From April, employers will be charged national insurance at a rate of 15%, up from 13.8%, and the threshold at which they begin to pay the tax has been lowered from £9,100 to £5,000.
Meanwhile, the minimum wage is rising by 6.7% to £12.21 an hour and the retail industry’s business rates bill will go up by £140million from April.
In 2018, New Look traded from almost 600 stores in the UK. Since then, the retailer has twice restructured its store estate and all of its outlets are on relatively short leases that link rents to store turnover.
A New Look spokesman said: “Our store estate is an important part of our business, alongside our best-in-class website and app. On occasion we do have to close stores, either due to the landlord’s request or because the site becomes unviable. However, we remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate."
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